The market is up 22. The SFE Futures were up 25 this morning.
The Dow closed up 28 points after being up as much as 81 on better than expected jobless numbers and as the EU approved the next stage of the Greek bailout accord. The S&P 500 closed up 0.6%, back above its 1,370 resistance level. Material and Financial stocks the best sectors. European markets were higher. Italian market up 2.9%. French and Spanish bond auctions well received post the LTRO loans Mark II this week. Metals were up on the LME. The oil price was up $1.74 to $108.81¢. The gold price was up another $7.40 to $1718.70. The Aussie dollar was up buying $108.03.
Main points:
- Sundance Resources (SDL) has entered a memorandum of understanding with Core Mining to form a partnership over the provision and use of future infrastructure facilities that would service both their iron ore projects. SDL is currently in talks China’s Hanlong Mining about a possible takeover deal.
- Newcrest Mining (NCM) has begun trading on the Toronto Stock Exchange (TSX). It entered as the 17th largest company by market cap and the 4th largest mining company. The TSX is home to Barrick Gold Corp the world’s largest gold producer.
- Downer EDI (DOW) has been awarded a contract to supply electro-motive diesel locomotives to BHP Billiton Iron Ore in the Pilbara for the next 5 years. The contract is worth over $400m including options. The first locomotives are expected to be delivered in the 2nd Q 2012.
- AGL Energy (AGK) has advised the offer size for their hybrid issue will not be increased from $650m. Last minute offer size increases were made by some of the banks last month. There are fears that the energy sector’s stricter regulations could force the company to stop paying coupons in a few years.
- Ainsworth Game Technology (AGI) the poker machine distributor is up 64% this month on the back of strong revenue growth. The media says the recent share price run makes it an ideal time to raise capital. This morning the company denied speculation and stated no equity offer proposal is being considered at this time.
- Qantas Airways’ (QAN) plans to enter the Asian market may suffer delays after its potential partner Malaysian Airlines has announced a fourth consecutive loss of $395m. This has prompted their management team to step up cost saving measures.
- Harvey Norman (HVN) may have breached laws governing movie and game Classifications Act by selling movies and games online that do not carry Australian ratings. HVN believes the products dispatched from Ireland do not need to comply with the Act or comply with Australian law.
- Orica (ORI) has plans to build a US$700m ammonium nitrate plant in WA. It is believed the plant will take 2 years to complete and will be online 2014.
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